(Venting)Is this right??

I got my W2 from work. I am married, but I wrote down that I wanted to be withheld at a single rate, and so did my hubby. We both claimed ZERO. We also told them to take out an extra $5 each paycheck to send for taxes so that we would get a good return.

I got my W2 last night. After 10 months of working there. I made roughly $5,500. My Federal Income Tax Withheld was... $32.00


Being married, earning that much, I have NEVER EVER EVER had that little withheld. I would assume that if they took out $5 a check, working 11 months, say only 2 checks a month... They should have held out over $100.

I think it's wrong. I think there has to be something wrong. I hope it is wrong. I was going to get a car... Hmmm... I really hope that it is something I missed. Any ideas?

I know nothing about these forms and taxes... but did you double check that your withholdings were zero? Because I know I asked for that... then a few months later I noticed that that's not what my paycheck was reflecting.

Originally Posted by pinkdaisy226

I know nothing about these forms and taxes... but did you double check that your withholdings were zero? Because I know I asked for that... then a few months later I noticed that that's not what my paycheck was reflecting.

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When I filled it out. And tonight at work. It was Zero. My boss brought them out, and showed me.

Usually if you claim zero exemptions, that means that you pay little or no taxes during the year....but your paycheck should be bigger. But you don't get much of a return at tax time. Based on your income, your tax liability should be roughly 10% of your GROSS income which would be $550...meaning that's how much you should have to pay in taxes for the year. If you already paid about $100......then you probably had some other deduction that took care of the rest of your tax debt so you wouldn't have to pay the additional $450.00. I'm no tax authority by any means.....so I'm just telling you how I understand it.

I always claim 3 exemptions which means they take out a huge chunk for taxes, (which means less money on the paychecks)...but I get a huge return every year. I look at it as a savings account of sorts because I always get back almost everything I paid in since I am divorced, head of household, with two dependants. I think my refund this year will be close to $8,000.

Too bad I can't claim on the kitties as dependants too! Shouldn't they have a "Cat Care Tax Credit?"

*scratches head* An exemption is... ? How is it different from a withholding?

I never understand any of this. I usually just call my dad, ask him what he thinks and hope he's right!

Originally Posted by pinkdaisy226

*scratches head* An exemption is... ? How is it different from a withholding?

I never understand any of this. I usually just call my dad, ask him what he thinks and hope he's right!

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An exemption is what you get based on how many withholding allowances you claim.

Anyway....here's a good link that explains it all:
IRS

I was always told if you claim Zero, that they take MORE out because you have no dependants. Not even yourself. Other people I work with claimed Zero, and got more taken out on each check. I am so confused. They should have at least taken out the extra $5 a check that I asked for. With my hubby having gotten into that wreck on Thursday that totaled our car... we don't even have a car now We were gunna use the return to get me a car. Since the wreck, we were looking at getting another car for hubby to deliver with. Now with no return we can't even get that. Our boss told us that if we claimed one that we would get less taken out each time. So we claimed zero.

Originally Posted by MyRage

I was always told if you claim Zero, that they take MORE out because you have no dependants. Not even yourself. Other people I work with claimed Zero, and got more taken out on each check. I am so confused. They should have at least taken out the extra $5 a check that I asked for.

With my hubby having gotten into that wreck on Thursday that totaled our car... we don't even have a car now

We were gunna use the return to get me a car. Since the wreck, we were looking at getting another car for hubby to deliver with. Now with no return we can't even get that. Our boss told us that if we claimed one that we would get less taken out each time. So we claimed zero.

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Yeah I think you're right.....I got it backwards. I still manage to get a big return every year even with claiming 3 exemptions. Maybe because I'm single.

Thanks Robin, though I'll still never understand.

And MyRage... I'm with ya. I thought if you put zero down, you'd get more back at tax time. But what do I know?

It sounds like they may have done the same thing to you that they did to me. Last year my company said they did that but they didn't take enough out so we got socked with taxes. Put down 0 and take and extra 5 out and you shouldn't have to pay as much at tax time. One tax guy I talked to said you should never EVER claim exemptions during the year.

Originally Posted by TTMom

It sounds like they may have done the same thing to you that they did to me. Last year my company said they did that but they didn't take enough out so we got socked with taxes. Put down 0 and take and extra 5 out and you shouldn't have to pay as much at tax time. One tax guy I talked to said you should never EVER claim exemptions during the year.

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Yeah... that's just what I do, Put 0, and have them take out an extra $5. I like getting a big return. My boss swears it's in the computer with both of us claiming 0.

There was one year, where when I filled out my W-4 with the extra $5 being taken out. Somehow it ended up that they only took out $5 a check. I had to pay taxed. I had another return coming in, and it payed for that one. UGH!! Hubby got a lot on his construction W-2, it should be enough to pay for what ever taxes we'll have to pay.

With an income that low, I think you can claim the earned income credit. Don't give up yet. I went to www.turbotax.com and did my taxes. It was very easy and I think part of it is free and part I paid $19 for. But there are always online places that you can use free when your income is low and you get your return in 10 days. In California if you are low income you also get the renter's credit. Becky

Originally Posted by KittyKook

Yeah I think you're right.....I got it backwards. I still manage to get a big return every year even with claiming 3 exemptions. Maybe because I'm single.

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Lol, single, and at the end of the year, you still claim your kids? We could get so much more money if we had kids, but honestly I'd rather have kids for other reasons. lol

I just don't understand. We looked at some pay stubs, and if only we had paid attention. We found one from June. We'd worked there 4 months by then, and YTD was $4 on hubby's. That stub said $0 on the line where Federal Withholding was. People who have worked there 4 and less months before the new year also got bigger returns then we did working there for 10 months. Okay, I will stop whining. It seems like it's all I've done lately. LOL